-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, opQX2sm2eVBZs5UItO43Mrrob9bnaZZLt3vMuAlfQq46f1OJsORqJaQApquLmOKp akDDMgR+hVE8kUF8ZCVIxg== 0000217216-95-000003.txt : 19950502 0000217216-95-000003.hdr.sgml : 19950502 ACCESSION NUMBER: 0000217216-95-000003 CONFORMED SUBMISSION TYPE: U-13-60 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950501 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN CO SERVICES INC CENTRAL INDEX KEY: 0000217216 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 630274273 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-13-60 SEC ACT: 1935 Act SEC FILE NUMBER: 049-00059 FILM NUMBER: 95533131 BUSINESS ADDRESS: STREET 1: 64 PERITMETER CENTER EAST CITY: ATLANTA STATE: GA ZIP: 303346 BUSINESS PHONE: 4046683574 U-13-60 1 Form U-13-60 Mutual and Subsidiary Service Companies Revised February 7, 1980 ANNUAL REPORT For The Period Beginning January 1, 1994 and Ending December 31, 1994 TO THE U. S. SECURITIES AND EXCHANGE COMMISSION OF SOUTHERN COMPANY SERVICES, INC. (Exact Name of Reporting Company) SUBSIDIARY SERVICE COMPANY ("Mutual" or "Subsidiary") Date of Incorporation April 21, 1949 If not Incorporated, Date of Organization State or Sovereign Power Under Which Incorporated or Organized State Alabama Location of Principal Executive Offices of Reporting Company 800 Shades Creek Parkway Birmingham, Alabama 35209 Name, title, and address of officer to whom correspondence concerning this report should be addressed: Vice President 64 Perimeter Center East W. Dean Hudson and Comptroller Atlanta, Georgia 30346 (Name) (Title) (Address) Name of Principal Holding Company Whose Subsidiaries are served by Reporting Company: THE SOUTHERN COMPANY INSTRUCTIONS FOR USE OF FORM U-13-60 1. Time of Filing.--Rule 94 provides that on or before the first day of May in each calendar year, each mutual service company and each subsidiary service company as to which the Commission shall have made a favorable finding pursuant to Rule 88, and every service company whose application for approval or declaration pursuant to Rule 88 is pending shall file with the Commission an annual report on form U-13-60 and in accordance with the Instructions for that form. 2. Number of Copies.--Each annual report shall be filed in duplicate. The company should prepare and retain at least one extra copy for itself in case correspondence with reference to the report become necessary. 3. Period Covered by Report.--The first report filed by any company shall cover the period from the date the Uniform System of Accounts was required to be made effective as to that company under Rules 82 and 93 to the end of that calendar year. Subsequent reports should cover a calendar year. 4. Report Format.--Reports shall be submitted on the forms prepared by the Commission. If the space provided on any sheet of such form is inadequate, additional sheets may be inserted of the same size as a sheet of the form or folded to such size. 5. Money Amounts Displayed.--All money amounts required to be shown in financial statements may be expressed in whole dollars, in thousands of dollars or in hundred thousands of dollars, as appropriate and subject to provisions of Regulation S-X ( 210.3-01(b)). 6. Deficits Displayed.--Deficits and other like entries shall be indicated by the use of either brackets or a parenthesis with corresponding reference in footnotes. (Regulation S-X, 210.3-01(c)) 7. Major Amendments or Corrections.--Any company desiring to amend or correct a major omission or error in a report after it has been filed with the Commission shall submit an amended report including only those pages, schedules, and entries that are to be amended or corrected. A cover letter shall be submitted requesting the Commission to incorporate the amended report changes and shall be signed by a duly authorized officer of the company. INSTRUCTIONS FOR USE OF FORM U-13-60 (Continued) 8. Definitions.--Definitions contained in Instruction 01-8 to the Uniform System of Accounts for Mutual Service companies and Subsidiary Service companies, Public Utility Holding Company Act of 1935, as amended February 2, 1979 shall be applicable to words or terms used specifically within this Form U-13-60. 9. Organization Chart.--The service company shall submit with each annual report a copy of its current organization chart. 10. Methods of Allocation.--The service company shall submit with each annual report a listing of the currently effective methods of allocation being used by the service company and on file with the Securities and Exchange Commission pursuant to the Public Utility Holding Company Act of 1935. 11. Annual Statement of Compensation for Use of Capital Billed.--The service company shall submit with each annual report a copy of the annual statement supplied to each associate company in support of the amount of compensation for use of capital billed during the calendar year. 2 LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS Schedule or Page Description of Schedules and Accounts Account Number Number COMPARATIVE BALANCE SHEET Schedule I 4-5 SERVICE COMPANY PROPERTY Schedule II 6-7 ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY Schedule III 8 INVESTMENTS Schedule IV 9 ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 10 FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 11 STORES EXPENSE UNDISTRIBUTED Schedule VII 12 MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 13 MISCELLANEOUS DEFERRED DEBITS Schedule IX 14 RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES Schedule X 15 PROPRIETARY CAPITAL Schedule XI 16 LONG-TERM DEBT Schedule XII 17 CURRENT AND ACCRUED LIABILITIES Schedule XIII 18 NOTES TO FINANCIAL STATEMENTS Schedule XIV 19 COMPARATIVE INCOME STATEMENT Schedule XV 20 ANALYSIS OF BILLING - ASSOCIATE COMPANIES Account 457 21 ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 22 ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND NONASSOCIATE COMPANIES Schedule XVI 23 3 LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS (Continued) Schedule or Page Description of Schedules and Accounts Account Number Number SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION Schedule XVII 24-25 DEPARTMENTAL ANALYSIS OF SALARIES Account 920 26 OUTSIDE SERVICES EMPLOYED Account 923 27 EMPLOYEE PENSIONS AND BENEFITS Account 926 28 GENERAL ADVERTISING EXPENSES Account 930.1 29 MISCELLANEOUS GENERAL EXPENSES Account 930.2 30 RENTS Account 931 31 TAXES OTHER THAN INCOME TAXES Account 408 32 DONATIONS Account 426.1 33 OTHER DEDUCTIONS Account 426.5 34 NOTES TO STATEMENT OF INCOME Schedule XVIII 35 FINANCIAL DATA SCHEDULE Schedule XIX 36 ORGANIZATION CHART 37 METHODS OF ALLOCATION 38 ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED 39 4 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. (Thousands of Dollars) SCHEDULE I - COMPARATIVE BALANCE SHEET Give balance sheet of the Company as of December 31 of the current and prior year. ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31 CURRENT PRIOR SERVICE COMPANY PROPERTY 101 Service company property (Schedule II) 255,116 281,412 107 Construction work in progress (Schedule II) 15,798 13,248 Total Property 270,914 294,660 108 Less accumulated provision for depreciation and amortization of service company property (Schedule III) 136,138 155,817 Net Service Company Property 134,776 138,843 INVESTMENTS 123 Investments in associate companies (Schedule IV) - - 124 Other investments (Schedule IV) 2,880 2,794 Total Investments 2,880 2,794 CURRENT AND ACCRUED ASSETS 131 Cash - 352 134 Special deposits - - 135 Working funds 99 51 136 Temporary cash investments (Schedule IV) - - 141 Notes receivable 60 70 143 Accounts receivable 29,344 24,095 146 Accounts receivable from associate companies (Schedule V) 81,132 70,829 152 Fuel stock expenses undistributed (Schedule VI) - - 154 Materials and supplies 1,541 2,389 163 Stores expense undistributed (Schedule VII) - - 165 Prepayments 2,334 4,058 174 Miscellaneous current and accrued assets (Schedule VIII) - - Total Current and Accrued Assets 114,510 101,844 DEFERRED DEBITS 181 Unamortized debt expense 3 29 184 Clearing accounts 106 - 186 Miscellaneous deferred debits (Schedule IX) 789 614 188 Research, development, or demonstration expenditures (Schedule X) - - 190 Accumulated deferred income taxes - - Total Deferred Debits 898 643 TOTAL ASSETS AND OTHER DEBITS 253,064 244,124 ======= ======= 5 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. (Thousands of Dollars) SCHEDULE I - COMPARATIVE BALANCE SHEET ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31 CURRENT PRIOR PROPRIETARY CAPITAL 201 Common stock issued (Schedule XI) 725 725 211 Miscellaneous paid-in-capital (Schedule XI) 59 56 215 Appropriated retained earnings (Schedule XI) - - 216 Unappropriated retained earnings (Schedule XI) - - Total Proprietary Capital 784 781 LONG-TERM DEBT 223 Advances from associate companies (Schedule XII) - - 224 Other long-term debt (Schedule XII) 74,048 74,476 225 Unamortized premium on long-term debt - - 226 Unamortized discount on long-term debt-debit - - Total Long-Term Debt 74,048 74,476 CURRENT AND ACCRUED LIABILITIES 231 Notes payable 12,428 28,632 232 Accounts payable 22,484 18,007 233 Notes payable to associated companies (Schedule XIII) 15,050 4,000 234 Accounts payable to associate companies (Schedule XIII) 23,316 41,000 236 Taxes accrued 346 150 237 Interest accrued 207 128 238 Dividends declared - - 241 Tax collections payable 1,409 531 242 Miscellaneous current and accrued liabilities (Schedule XIII) 42,196 32,989 Total Current and Accrued Liabilities 117,436 125,437 DEFERRED CREDITS 253 Other deferred credits 60,796 43,430 255 Accumulated deferred investment tax credits - - Total Deferred Credits 60,796 43,430 282 ACCUMULATED DEFERRED INCOME TAXES - - TOTAL LIABILITIES AND PROPRIETARY CAPITAL 253,064 244,124 ======= ======= 6 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE II SERVICE COMPANY PROPERTY BALANCE AT BALANCE AT BEGINNING RETIREMENTS OTHER 1/ CLOSE OF DESCRIPTION OF YEAR ADDITIONS OR SALES CHANGES YEAR SERVICE COMPANY PROPERTY Account 301 ORGANIZATION - - - - - 303 MISCELLANEOUS INTANGIBLE PLANT - - - - - 304 LAND & LAND RIGHTS 2,311 - (492) - 1,819 305 STRUCTURES AND IMPROVEMENTS 71,861 - (17,452) (1,010) 53,399 306 LEASEHOLD IMPROVEMENTS 24,869 2,217 - (688) 26,398 307 EQUIPMENT 2/ 105,834 10,633 (11,479) (19) 104,969 308 OFFICE FURNITURE AND EQUIPMENT 30,562 3,739 (9,559) 1,034 25,776 309 AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT 3,389 738 (634) 24 3,517 310 AIRCRAFT AND AIRPORT EQUIPMENT 28,692 1 (1) - 28,692 311 OTHER SERVICE COMPANY PROPERTY 3/ 13,894 2,436 (5,756) (28) 10,546 SUB-TOTAL 281,412 19,764 (45,373) (687) 255,116 107 CONSTRUCTION WORK IN PROGRESS 4/ 13,248 112,706 - (110,156)(1) 15,798 TOTAL 294,660 132,470 (45,373) (110,843) 270,914 ======= ======= ======= ======== ======= 1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: (1) Transfer of equipment to Southern Communications. ( ) Denotes red figure. 7 SCHEDULE II-CONTINUED (Thousands of Dollars) 2/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR: BALANCE AT CLOSE OF SEC/CLASS SUBACCOUNT DESCRIPTION ADDITIONS YEAR 307/02 Research & Laboratory Equip. 172 900 307/03 Word Processing/Office Automation Equip. 667 3,453 307/04 Personal Computer Equip. 6,416 31,712 307/05 Computer Equipment 2,249 54,514 307/11 Telephone Systems 157 6,493 307/12 Telecommunications Equip. 972 7,897 308/01 Furniture & Fixtures 3,187 20,380 308/09 Data Handling Equipment & Miscellaneous 552 5,396 309/08 Autos, Trucks & Trailers 738 3,517 310/07 Aircraft 1 28,692 311/10 Software 2,436 8,854 311/13 Coal Pilot Scale Combustion Facility - 1,671 311/14 Boats - 21 TOTAL 17,547 173,500 ====== ======= 3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY: 1. Purchased computer software and software licenses. 2. Pulverized coal pilot scale combustion facility. 3. Boats, motors, & trailers 4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS: A. An energy management system for the Southern Electric System to be located at Birmingham, Alabama. B. Equipment for Southern Communications. ( ) Denotes red figure. 8 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE III ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY ADDITIONS OTHER BALANCE AT CHARGED CHARGES BALANCE AT BEGINNING TO ADD CLOSE OF DESCRIPTION OF YEAR ACCT #403 RETIREMENTS (DEDUCT)1/ YEAR Account 301 ORGANIZATION - - - - - 303 MISCELLANEOUS INTANGIBLE PLANT - - - - - 304 LAND & LAND RIGHTS - - - - - 305 STRUCTURES AND IMPROVEMENTS 29,478 1,719 (11,593) - 19,604 306 LEASEHOLD IMPROVEMENTS 9,768 943 - - 10,711 307 EQUIPMENT 80,907 9,886 (10,951) - 79,842 308 OFFICE FURNITURE AND FIXTURES 17,698 2,803 (9,505) - 10,997 309 AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT 1,786 483 (460) 7 1,816 310 AIRCRAFT AND AIRPORT EQUIPMENT 6,975 980 (1) - 7,954 311 OTHER SERVICE COMPANY PROPERTY 9,205 1,670 (5,739) 79 5,215 TOTAL 155,817 18,484 (38,249) 86 136,138 ======= ====== ======= ==== ======= 1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: NONE ( ) Denotes red figure. 9 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE IV INVESTMENTS INSTRUCTIONS: Complete the following schedule concerning investments. Under Account 124, "Other Investments", state each investment separately, with description, including the name of issuing company, number of shares or principal amount, etc. Under Account 136, "Temporary Cash Investments", list each investment separately. BALANCE AT BALANCE AT BEGINNING CLOSE OF DESCRIPTION OF YEAR YEAR ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES - - ACCOUNT 124 - OTHER INVESTMENTS Employee Energy Loans 1,746 1,842 Energy Insurance Mutual LTD - Reserve 11 11 ACE Limited - Reserve 69 69 Employee Computer Loans 866 866 Notes Receivable 91 87 Miscellaneous 11 5 ACCOUNT 136 - TEMPORARY CASH INVESTMENTS - - TOTAL 2,794 2,880 ===== ===== 10 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE V ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES INSTRUCTIONS: Complete the following schedule listing accounts receivable from each associate company. Where the service company has provided accommodation or convenience payments for associate companies, a separate listing of total payments for each associate company by subaccount should be provided. BALANCE AT BALANCE AT BEGINNING CLOSE OF DESCRIPTION OF YEAR YEAR ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES The Southern Company 1,739 3,403 Alabama Power Company 13,113 15,355 Georgia Power Company 19,381 26,306 Gulf Power Company 13,305 5,346 Mississippi Power Company 9,183 4,893 Savannah Electric and Power Company 5,986 4,921 Southern Communications Services, Inc. - 9,638 Southern Development & Investment Group, Inc. 2 1 Southern Electric Generating Company 764 384 Southern Electric International, Inc. 2,208 1,986 Southern Electric Railroad 40 19 Southern Nuclear Operating Company 5,108 8,397 Trustee for SCS Pension - 483 TOTAL 70,829 81,132 ====== ====== ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL PAYMENTS The Southern Company 2,797 Alabama Power Company 59,165 Georgia Power Company 128,367 Gulf Power Company 17,258 Mississippi Power Company 65,008 Savannah Electric and Power Company 49,462 Southern Communications Services, Inc. 9,717 Southern Development & Investment Group, Inc. - Southern Electric Generating Company 498 Southern Electric International, Inc. 51,116 Southern Electric Railroad - Southern Nuclear Operating Company 15,194 Trustee for SCS Pension 483 The major portion of the above expenses consists of the Integrated System Power Pool transactions, transactions relating to the System Pension Plan, transactions relating to the Employee Savings Plan and transactions relating to the Employee Stock Ownership Plan. TOTAL PAYMENTS 399,065 ======= 11 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE VI FUEL STOCK EXPENSES UNDISTRIBUTED INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to fuel stock expenses during the year and indicate amount attributable to each associate company. Under the section headed "Summary" listed below give an overall report of the fuel functions performed by the service company. DESCRIPTION LABOR EXPENSES TOTAL ACCOUNT 152 - FUEL STOCK EXPENSES UNDISTRIBUTED 3,134 2,804 5,938 Total amount billed during current year as follows: Associated Companies The Southern Company - - - Alabama Power Company (958) (976) (1,934) Georgia Power Company (1,278) (980) (2,258) Gulf Power Company (250) (188) (438) Mississippi Power Company (295) (243) (538) Savannah Electric and Power Company (67) (62) (129) Southern Electric Generating Company (75) (77) (152) Southern Electric International, Inc. (158) (165) (323) Southern Electric Railroad (53) (113) (166) Subtotal (3,134) (2,804) (5,938) Nonassociated Companies - - - TOTAL 0 0 0 ======= ===== ===== ( ) Denotes red figure. SUMMARY: Fuel services performed by the service company consists of acting as agent on behalf of all the system operating companies on fossil related matters as defined in an operating agreement with each company. 12 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to stores expense during the year and indicate amount attributable to each associate company. DESCRIPTION LABOR EXPENSES TOTAL ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED NOT APPLICABLE TOTAL ====== ======= ====== 13 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE VIII MISCELLANEOUS CURRENT AND ACCRUED ASSETS INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000 may be grouped, showing the number of items in each group. BALANCE AT BALANCE AT BEGINNING CLOSE OF DESCRIPTION OF YEAR YEAR ACCOUNT 174 - MISCELLANEOUS CURRENT AND ACCRUED ASSETS - - NOT APPLICABLE 14 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE IX MISCELLANEOUS DEFERRED DEBITS INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000 may be grouped, showing the number of items in each class. BALANCE AT BALANCE AT BEGINNING CLOSE OF DESCRIPTION OF YEAR YEAR ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS New York State Teachers Retirement System 77 - Deposit for Georgia Sales and Use Tax 13 17 Wilsonville Clean-up 448 581 Payroll Taxes - 180 Expenses Deferred Until 1994 76 - Expenses Deferred Until 1995 - 11 Total 614 789 === === 15 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE X RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES INSTRUCTIONS: Provide a description of each material research, development, or demonstration project which incurred costs by the service corporation during the year. DESCRIPTION AMOUNT ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES 42,632 Total amount billed/incurred during current year as follows: Associate Companies Clean Coal Projects: Alabama Power Company (1,373) Georgia Power Company (2,212) Gulf Power Company (343) Mississippi Power Company (281) Savannah Electric & Power Company (37) Southern Electric Generating Company (236) Air Quality Studies (135) Combustion and Fuel Effects (735) Research Administration (533) Flue Gas Treatment-Gen Evaluation (263) Particulate Control Studies (376) Water and Waste Management Research (5) Advanced Energy Systems (1,547) Thermal & Fluid Sciences (245) R&D Tech. Econ Assessments (152) Non-Associate Companies: Electric Power Research Institute Clean Coal Technology (717) U.S. Department of Energy Dev Selected Agglomeration (5) Hot Gas Clean-up Project (27,617) Westinghouse AP600 Design Certification (111) Generic NOx Control Intelligent System (157) GE - SBWR Project (91) Westinghouse 1RST of Kind Engr (FOAKE) (2,184) Clean Coal Technology (2,810) Clean Coal Technology - Not Billed (467) TOTAL 0 ======= ( ) Denotes red figure. 16 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XI - PROPRIETARY CAPITAL NUMBER OF PAR OR STATED OUTSTANDING ACCOUNT SHARES VALUE CLOSE NUMBER CLASS OF STOCK AUTHORIZED PER SHARE OF PERIOD 201 COMMON STOCK NO. OF SHARES ISSUED 17,000 50.00 14,500 TOTAL AMOUNT 725 INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of transactions which gave rise to the reported amounts. DESCRIPTION AMOUNT ACCOUNT 211 MISCELLANEOUS PAID-IN CAPITAL 59 ACCOUNT 215 APPROPRIATED RETAINED EARNINGS - TOTAL 59 INSTRUCTIONS: Give particulars concerning net income or (loss) during the year, distinguishing between compensation for the use of capital owed or net loss remaining from servicing nonassociates per the General Instructions of the Uniform System of Accounts. For dividends paid during the year in cash or otherwise, provide rate percentage, amount of dividend, date declared and date paid. BALANCE AT NET INCOME BALANCE AT BEGINNING OR DIVIDENDS CLOSE DESCRIPTION OF YEAR (LOSS) PAID OF YEAR ACCOUNT 216 UNAPPROPRIATED RETAINED EARNINGS - - - - TOTAL - - - - 17 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XII - LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately for advances on notes, and advances on open account. Names of associate companies from which advances were received shall be shown under the class and series of obligation column. For Account 224 - Other Long-Term Debt provide the name of creditor company or organization, terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding.
TERMS OF OBLIG DATE BALANCE AT BALANCE AT CLASS & SERIES OF INTEREST AMOUNT BEGINNING 1/ CLOSE NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS OF YEAR ACCOUNT 223 - ADVANCES FROM ASSOCIATE COMPANIES: NOT APPLICABLE ACCOUNT 224 - OTHER LONG-TERM DEBT: Notes Payable Wachovia 9/9/96 4.62 10,000 10,000 - - 10,000 CIBC, Inc. 9/9/97 4.94 15,000 15,000 - - 15,000 Subtotal 25,000 25,000 - - 25,000 OTHER LONG-TERM DEBT: CAPITAL LEASE OBLIGATION Taylor and Mathis 02/01/2011 9.25 7,225 6,045 - 170 5,874 Taylor and Mathis 02/01/2011 13.00 41,551 43,431 - 258 43,174 Subtotal 48,776 49,476 - 428 49,048 TOTAL 73,776 74,476 - 428 74,048 ====== ====== ==== ==== ====== 1/ GIVE AN EXPLANATION OF DEDUCTIONS: Taylor and Mathis - Deductions of $427,978.06 transferred to current maturities.
18 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES INSTRUCTIONS: Provide balance of notes and accounts payable to each associate company. Give description and amount of miscellaneous current and accrued liabilities. Items less than $10,000 may be grouped, showing the number of items in each group. BALANCE AT BALANCE AT BEGINNING CLOSE OF DESCRIPTION OF YEAR YEAR ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES The Southern Company 4,000 15,050 TOTAL 4,000 15,050 ===== ====== ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES The Southern Company - - Alabama Power Company 22,396 12,294 Georgia Power Company 10,655 3,983 Gulf Power Company 1,208 733 Mississippi Power Company 311 208 Savannah Electric and Power Company 11 20 Southern Electric Generating Company 12 38 Southern Electric International, Inc. 274 - Southern Nuclear Operating Company 6,133 6,040 TOTAL 41,000 23,316 ====== ====== ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES Incentive Pay 13,037 15,751 Vacation Clearing Account 11,166 11,282 Accrued Labor & Related Overheads - 4,208 Employee Group Insurance Premiums 2,903 2,624 Early Retirement Benefits 1,758 2,223 Productivity Improvement Program 1,350 1,902 Accumulated Provision for Major Overhaul of Aircraft 762 1,209 Supplemental Pensions and Benefits 996 1,274 Department of Energy 438 240 Flex and Save Benefits 228 956 Post Employment Benefits 68 66 Workmen's Compensation Awards 17 - Severance Pay 50 - Employee Travel - Diners Club - (43) Metro Life Advance-Current 151 169 (Continued on Page 18A) 18A ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES (Continued) BALANCE AT BALANCE AT BEGINNING CLOSE OF DESCRIPTION OF YEAR YEAR SCS Employee Energy Loan - 68 Associate Companies - ESP - 22 SNC - U. S. Savings Bond Withholdings - 20 Committment Fees - Credit Lines - 63 MPCO - Credit Union Withholdings - 99 Accrued Bank Fees - 51 Wages - Regular Part-Time Employees 28 - Payroll - General 20 - Miscellaneous (9) 17 - Miscellaneous (29) - 12 TOTAL 32,989 42,196 ====== ====== 19 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Southern Company Services, Inc. (the "Company") follows the Uniform System of Accounts prescribed by the Securities and Exchange Commission ("SEC") for service companies, as amended, effective January 1, 1980. The Company has no earnings or retained earnings since it primarily renders services at cost to its parent company, The Southern Company, and to that company's subsidiaries, as further discussed in Note 2. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of 90 days or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value. Income Taxes The Company is included in the consolidated federal income tax return with The Southern Company and its subsidiaries. Federal income tax deferrals primarily resulting from the use of accelerated depreciation are fully utilized and accounted for by the operating subsidiaries of The Southern Company. Pension Costs The Company has a defined benefit, trusteed, noncontributory pension plan which covers substantially all regular employees. The Company uses the "entry age normal method with frozen initial liability" actuarial method for funding purposes, subject to limitations under federal income tax regulations. Statement of Financial Accounting Standards No. 87, "Employers' Accounting for Pensions," requires use of the "projected unit credit" actuarial method for financial reporting purposes. 19A ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. The following table sets forth the defined benefit plan's funded status using the projected unit credit method as of December 31, 1994 and 1993: 1994 1993 ------------------- (In Thousands) Actuarial present value of benefit obligations: Vested benefits $156,415 $141,444 Nonvested benefits 6,980 7,946 -------- -------- Accumulated benefit obligation 163,395 149,390 Additional amounts related to projected salary increases 71,725 63,131 -------- -------- Projected benefit obligation 235,120 212,521 Less: Fair value of plan assets, primarily equity and fixed-income securities 315,040 327,208 Unrecognized net gain (78,639) (104,658) Unrecognized prior service cost 4,782 6,151 Unrecognized net transition asset (13,331) (14,442) --------- ------- (Accrued) prepaid pension costs $ (7,268) $ 1,738 ========= ========= The rates assumed in the actuarial calculations were as follows: 1994 1993 ---- ---- Discount 8.0% 7.5% Annual salary increase 5.5% 5.0% Long-term return on plan assets 8.5% 8.5% 19B ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. The components of net pension cost are shown below: 1994 1993 ---------- --------- (In Thousands) Service costs/benefits earned during the year $ 8,945 $ 8,865 Interest cost on projected benefit obligation 15,917 14,893 Actual return on plan assets 7,645 (41,954) Net amortization and deferral (34,883) 18,255 --------- ------- Net pension (income) cost $ (2,376) $ 59 ========= ======== The Company incurred additional expenses of approximately $14,000,000 and $1,500,000 in 1994 and 1993, respectively, related to severance benefits under work force reduction programs. Other Postretirement Benefits The Company also provides certain health care and life insurance benefits for retired employees. Substantially all employees may become eligible for these benefits when they retire. The Company recognizes these benefit costs on an accrual basis. The cost to provide these benefits amounted to approximately $12,000,000 and $7,000,000 for 1994 and 1993, respectively. Effective January 1, 1993, Southern Company Services, Inc. adopted the provisions of Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." This statement requires that the cost of such benefits be accounted for on an accrual basis, using a specified actuarial method, "benefit/years- of-service." The method utilized by the Company is on a prospective basis where costs will be recognized over a period of 20 years, commencing in 1993. 19C ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. The following table sets forth the funded status of the plans as of December 31, 1994: Postretirement Postretirement Medical Life Medical Life 1994 1994 1993 1993 ------ ---- ------- ---- (In Thousands) Actuarial present value of benefit obligation: Retirees and Dependents $21,003 $ 8,481 $12,668 $ 6,731 Employees eligible to retire 1,695 - 4,397 - Other employees 28,204 9,808 30,365 10,716 ------- ------- ------- ------ Accumulated benefit obligations 50,902 18,289 47,430 17,447 Less: Fair value of plan assets 13,348 92 13,773 105 Unrecognized net loss (gain) 1,595 (1,631) 5,213 (1,394) Unrecognized transition obligation 17,590 6,212 18,901 6,682 ------- ------- ------- ------ Accrued postretirement benefit cost $18,369 $13,616 $ 9,543 $12,054 ======= ======= ======= ======= The rates assumed in the actuarial calculations were as follows: 1994 1993 ---- ---- Discount 8.0% 7.5% Annual salary increase 5.5 5.0 Long-term return on plan assets 8.5 8.5 An additional assumption used in measuring the accumulated postretirement medical benefit obligation was a weighted average medical care cost trend rate of 10.5 percent for 1994 decreasing gradually to 6.0 percent through the year 2000 and remaining at that level thereafter. An annual increase in the assumed medical care cost trend rate of 1 percent would increase the accumulated medical benefit obligation at December 31, 1994, by $10 million and the aggregate of the service and interest cost components of the net retiree medical cost by $1.5 million. 19D ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. The components of net periodic post retirement costs for 1994 and 1993 are as follows: Postretirement Postretirement Medical Life Medical Life 1994 1994 1993 1993 ------- ---- ------ ---- (In Thousands) Service cost/benefits earned during the year $2,123 $ 631 $1,719 $ 686 Interest cost on accumulated benefit obligation 3,618 1,317 2,957 1,365 Amortization of transition obligation over 20 years 985 348 995 352 Actual return on plan assets 425 12 (1,774) (8) Net amortization and deferral (1,529) (20) 754 - ------ ------ ------ ------ Net postretirement benefit cost $5,622 $2,288 $4,651 $2,395 ====== ====== ====== ====== Early Retirement Program In 1994, the Company incurred an additional cost of $17,048,000 related to an early retirement program. These costs were charged to income. Property, Equipment, and Depreciation and Amortization Property and equipment, including any interest capitalized during construction, are recorded at cost. Depreciation and amortization are provided on the straight-line method over the estimated economic life of the related asset (ranging from 5 to 12 years). Leasehold improvements are amortized over the lives of the respective leases. On retirement or sale of assets, the cost of such assets and the related accumulated depreciation are removed from the accounts, and the gain or loss, if any, is credited or charged to income. Reclassification Certain prior year amounts have been reclassified to conform with the current year presentation. 19E ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. 2. SERVICE AGREEMENTS The Southern Company and each of its operating subsidiaries (Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company, and Savannah Electric and Power Company), Southern Electric Generating Company (an operating subsidiary owned equally by Alabama Power Company and Georgia Power Company), Southern Electric International, Inc.(a subsidiary of The Southern Company which designs, builds, owns, and operates power production facilities and provides a broad range of technical services to industrial companies and utilities in the United States and a number of international markets), Southern Development and Investment Group, Inc. (a subsidiary of The Southern Company which researches and develops new business opportunities), Southern Nuclear Operating Company (a subsidiary of The Southern Company which provides services to the Southern electric system nuclear power plants), and Southern Electric Railroad Company (a subsidiary of The Southern Company, which provides railroad services to the operating subsidiaries) have entered into agreements with the Company under which the Company renders the following services at cost: general executive and advisory services, general engineering, design engineering, purchasing, accounting and statistical, finance and treasury, tax, insurance and pension, rate, budgeting, business promotion and public relations, employee relations, systems and procedures, and other services with respect to business and operations and, in the case of operating subsidiaries, power pool operations. The agreements shall be canceled to the extent and from the time that performance thereunder conflicts with any rule, regulation, or order of the SEC adopted before or after the execution of the agreements. 3. LONG-TERM OPERATING LEASES The Company leases various facilities and equipment under noncancelable operating lease arrangements. Rental expense under all operating leases was approximately $10,700,000 and $8,400,000 in 1994 and 1993, respectively. Future minimum lease payments under these noncancelable operating leases as of December 31, 1994 are as follows: 1995 $10,700,000 1998 $5,800,000 1996 $10,600,000 1999 $5,700,000 1997 $8,300,000 Thereafter $35,400,000 Total $76,500,000 19F ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. 4. LONG-TERM DEBT AND NOTES PAYABLE - OTHER Details of long-term debt and notes payable - other at December 31 are as follows: 1994 1993 ------ ------ (In Thousands) Long-term debt Notes payable: 9 3/4% due in 1994 $ - $ 9,855 4.62% due 1996 10,000 10,000 4.94% due 1997 15,000 15,000 ------- ------- 25,000 34,855 ------- ------- Less Current Maturities - (9,855) ------- ------- 25,000 25,000 ------- ------- Capitalized lease obligations: 9 1/4% building lease 6,045 6,199 13% building lease 43,431 43,554 ------- ------- 49,476 49,753 ------- ------- Less Current Maturities (428) (277) ------- ------- 49,048 49,476 ------- ------- Total long-term debt $74,048 $74,476 ======= ======= The Company also has short-term debt in the amount of $12,000,000 at an interest rate of 6.00% which is due January 5, 1995. 19G ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. The Southern Company has guaranteed the payment of the above notes and the rental payments relating to the 13% building lease. In September 1993, the Company issued $10 million of 4.62% notes payable due 1996 to Wachovia Bank of Georgia and $15 million of 4.94% notes payable due 1997 to CIBC, Inc. Maturities over the next five years of the Company's long-term debt outstanding at December 31, 1994 are as follows: 1995 $ 428,000 1996 10,598,000 1997 15,792,000 1998 1,011,000 1999 1,259,000 Thereafter 45,388,000 ----------- Total $74,476,000 =========== Assets acquired under capital leases are recorded in the Company's balance sheets as office building. The net book value of assets acquired under capitalized leases was approximately $30,460,000 and $32,340,000 at December 31, 1994 and 1993, respectively. In January 1994, Southern Company Services, Inc. sold to Orchard L.L.C. the office building located at 800 Shades Creek Parkway in Birmingham. As a result of this sale, the obligation to New York State Teacher's Retirement System was retired. The Company at that time entered into a four year operating lease with Orchard. Financial Instruments In accordance with Statement of Financial Accounting Standards No. 107, "Disclosure About Fair Value of Financial Instruments," all financial instruments of the Company - for which the carrying amount does not approximate fair value - are shown in the table below as of December 31: Long-Term Debt ----------------------- Carrying Fair Amount Value -------- ----- (In Millions) 1994 $25.0 $23.5 1993 $34.9 $34.5 The fair values for long-term debt were based on closing prices of comparable instruments. 19H ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. 5. PURCHASE COMMITMENTS The Company has purchase commitments for computer hardware and software. At December 31, 1994, future expenditures for these commitments are estimated to be up to $4,500,000 as follows: Year Ending December 31 Amount (In Thousands) 1995 $3,000 1996 1,500 ---- ------ Total $4,500 ====== 20 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XV STATEMENT OF INCOME ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR INCOME 457 Services rendered to associate companies 361,253 344,202 458 Services rendered to nonassociate companies 44,326 28,016 421 Miscellaneous income or loss 421 92 Total Income 406,000 372,310 EXPENSE 920 Salaries and wages 164,884 165,257 921 Office supplies and expenses 48,342 46,220 922 Administrative expense transferred- credit - - 923 Outside services employed 80,414 62,800 924 Property insurance 1,376 1,002 925 Injuries and damages 211 271 926 Employee pensions and benefits 37,607 22,556 928 Regulatory commission expense 16 100 930.1 General advertising expenses - - 930.2 Miscellaneous general expenses 6,200 6,238 931 Rents 10,697 8,373 932 Maintenance of structures and equipment 16,378 16,615 403 Depreciation and amortization expense 18,483 19,571 408 Taxes other than income taxes 12,410 12,713 409 Income taxes 160 3 410 Provision for deferred income taxes - - 411 Provision for deferred income taxes - credit - - 411.5 Investment tax credit - - 426.1 Donations 890 587 426.5 Other deductions - - 427 Interest on long-term debt 6,801 8,409 430 Interest on debt to associate companies 213 142 431 Other interest expense 918 1,453 Total Expense 406,000 372,310 Net Income or (Loss) - - ======= ======= 21 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) ANALYSIS OF BILLING ASSOCIATE COMPANIES ACCOUNT 457 DIRECT INDIRECT COMPENSAT'N TOTAL COSTS COSTS FOR USE AMOUNT NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED 457-1 457-2 457-3 The Southern Company $ 17,416 $ 4,405 $ 527 $ 22,348 Alabama Power Company 53,841 17,816 1,930 73,587 Georgia Power Company 93,717 31,631 3,193 128,541 Gulf Power Company 15,049 4,793 475 20,317 Mississippi Power Company 17,906 7,087 538 25,531 Savannah Electric & Power Company 4,952 1,740 128 6,820 Southern Electric Generating Company 629 280 14 923 Southern Electric International, Inc. 13,907 6,900 286 21,093 The Southern Development and Investment Group, Inc. 15 9 1 25 Southern Nuclear Operating Company 44,237 16,796 758 61,791 Southern Railroad 221 33 23 277 TOTAL $261,890 $91,490 $7,873 $361,253 ======== ======= ====== ======== 22
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) ANALYSIS OF BILLING NONASSOCIATE COMPANIES ACCOUNT 458 DIRECT INDIRECT COMPENSATION EXCESS TOTAL COSTS COSTS FOR USE TOTAL OR AMOUNT NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED --------------------------- ------- ------- ----------- ---- ---------- ------ 458-1 458-2 458-3 458-4 Electric Power Research Institute $ 2,027 $ 194 $ 3 $ 2,224 $ 0 $ 2,224 Florida Power & Light Co./Jacksonville Electric Authority/ City of Tallahassee 102 10 0 112 0 112 MPX Systems, Inc. 152 15 0 167 0 167 Department of Energy 35,286 3,380 52 38,718 0 38,718 Oglethorpe Power Corporation 2,265 217 3 2,485 0 2,485 Powerco Federal Credit Union 9 1 0 10 0 10 Bank of America, First Bank, Fleet Credit Corp. 46 4 0 50 0 50 Center for Economic and Energy Devel. 5 0 0 5 0 5 Southeastern Electric Reliability Council 10 1 0 11 0 11 Westinghouse 2 0 0 2 0 2 Southern System Master Retirement Trust 494 47 1 542 0 542 TOTAL $40,398 $3,869 $59 $44,326 $0 $44,326 ======= ====== === ======= == =======
INSTRUCTION: Provide a brief description of the services rendered to each nonassociate company: Electric Power Research Institute - Contract services concerning a catalyst test facility, control system training, a groundwater manual, high-sulfur coal fabric filter pilot plant, bulk transmission system reliability evaluation, an index system for coal combustion by-products, SCL Coal burner project, and FACTS project. Florida Power & Light Co./Jacksonville Electric Authority/City of Tallahassee - Services concerning unit power sales agreement. MPX Systems, Inc. - Services concerning fiber optic transport system. Department of Energy - Contract services concerning clean coal technologies, pressurized fluidized bed combustion studies, advanced integrated heat pump project, integrated gasification combined-cycle systems assessment project, engineering development of selective agglomeration, hot gas cleanup project, and development of a coal quality expert for reducing emissions and power production costs. Oglethorpe Power Corporation - Services concerning weather radar transport, and operating and planning services scheduling fees. Powerco Federal Credit Union - Services concerning telephone equipment usage. Bank of America, First Bank, Fleet Credit Corp - Services concerning capital placement. Center for Economic and Energy Development - Services concerning television network system productions. Southeastern Electric Reliability Council - Services concerning occupancy. Westinghouse - Services concerning review of electrical distribution system. Southern System Master Retirement Trust - Services provided by trustee (Bankers Trust) for Southern System Master Retirement Trust.
23
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XVI ANALYSIS OF CHARGES FOR SERVICE ASSOCIATE AND NONASSOCIATE COMPANIES ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE ------------------------- ---------------------------- ------------------------- DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL COST COST TOTAL - --------------------- ------ -------- ----- ------ -------- ----- ----- ------- ----- 920 SALARIES AND WAGES $132,617 $26,157 $158,774 $ 5,746 $ 364 $6,110 $138,363 $26,521 $164,884 921 OFFICE SUPPLIES & EXPENSES 37,609 8,447 46,056 2,204 82 2,286 39,813 8,529 48,342 922 ADMINISTRATIVE EXP. TRANSFERRED-CREDIT - - - - - - - - - 923 OUTSIDE SERVICES EMPLOYED 45,896 5,231 51,127 29,268 19 29,287 75,164 5,250 80,414 924 PROPERTY INSURANCE 409 748 1,157 216 3 219 625 751 1,376 925 INJURIES AND DAMAGES 5 206 211 - - - 5 206 211 926 EMPLOYEE PENSIONS & BENEFITS 19,580 17,380 36,960 - 647 647 19,580 18,027 37,607 928 REGULATORY COMMISSION EXPENSE 16 - 16 - - - 16 - 16 930.1 GENERAL ADVERTISING EXPENSES - - - - - - - - - 930.2 MISCELLANEOUS GENERAL EXPENSES (479) 1,998 1,519 2,860 1,821 4,681 2,381 3,819 6,200 931 RENTS 5,682 4,796 10,478 31 188 219 5,713 4,984 10,697 932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 10,159 6,050 16,209 34 135 169 10,193 6,185 16,378 403 DEPRECIATION & AMORTIZATION EXPENSE 9,052 9,231 18,283 38 162 200 9,090 9,393 18,483 408 TAXES OTHER THAN INCOME TAXES 1,365 10,596 11,961 1 448 449 1,366 11,044 12,410 409 INCOME TAXES - 160 160 - - - - 160 160 410 PROVISION FOR DEFERRED INCOME TAXES - - - - - - - - - 411 PROVISION FOR DEFERRED INCOME TAXES CREDIT - - - - - - - - - 411.5 INVESTMENT TAX CREDIT - - - - - - - - - 426.1 DONATIONS 400 490 890 - - - 400 490 890 426.5 OTHER DEDUCTIONS - - - - - - - - - SUBTOTAL EXPENSES = 262,311 91,490 353,801 40,398 3,869 44,267 302,709 95,359 398,068
INSTRUCTION: Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules.
( ) Denotes red figure. 23A
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XVI ANALYSIS OF CHARGES FOR SERVICE ASSOCIATE AND NONASSOCIATE COMPANIES ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE -------------------------- ---------------------------- ------------------------- DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL COST COST TOTAL ------ ------ ----- ----- ------ ----- ---- ------ ----- 427 INTEREST ON LONG-TERM DEBT - - 6,742 - - 59 - - 6,801 430 INTEREST ON DEBT TO ASSOCIATE COMPANIES - - 213 - - - - - 213 431 OTHER INTEREST EXPENSE - - 918 - - - - - 918 -------- ------- -------- ------- ------ ------- -------- ------- -------- TOTAL EXPENSES = 262,311 91,490 361,674 40,398 3,869 44,326 302,709 95,359 406,000 421 MISCELLANEOUS GAIN (421) - (421) - - - (421) - (421) -------- ------- -------- ------- ------ ------- -------- ------- -------- TOTAL COST OF SERVICE = $261,890 $91,490 $361,253 $40,398 $3,869 $44,326 $302,288 $95,359 $405,579 ======== ======= ======== ======= ====== ======= ======== ======= ========
24
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XVII SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION DEPARTMENT OR SERVICE FUNCTION Finance Human Total and Governmental Resources and Information DESCRIPTION OF ITEMS Amount Engineering Executive Accounting Affairs Administration Resources -------------------- ------ ----------- --------- ---------- ----------- -------------- ----------- 920 SALARIES AND WAGES $164,884 $52,192 $3,730 $17,464 $ 1,028 $10,683 $ 35,548 921 OFFICE SUPPLIES AND EXPENSES 48,342 6,524 314 4,259 441 2,710 23,270 922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT - - - - - - - 923 OUTSIDE SERVICES EMPLOYED 80,414 16,613 562 5,434 1,255 6,582 9,396 924 PROPERTY INSURANCE 1,376 245 5 81 3 56 195 925 INJURIES AND DAMAGES 211 45 1 13 - 9 30 926 EMPLOYEE PENSIONS & BENEFITS 37,607 5,980 218 1,958 106 1,365 4,186 928 REGULATORY COMMISSION EXPENSE 16 - - - - - - 930.2 MISCELLANEOUS GENERAL EXPENSES 6,200 85 436 746 335 2,848 1,195 931 RENTS 10,697 1,948 27 115 41 441 3,661 932 MAINTENANCE OF STRUCTURES & EQUIP 16,378 1,837 101 895 20 1,026 6,133 403 DEPRECIATION & AMORTIZATION EXPENSE 18,483 2,754 122 1,294 49 1,263 9,394 408 TAXES OTHER THAN INCOME TAXES 12,410 3,892 84 1,274 45 828 3,008 409 INCOME TAXES 160 - - - - - - 410 PROVISION FOR DEFERRED INCOME TAXES - - - - - - - 411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT - - - - - - - 426.1 DONATIONS 890 - 193 - 128 30 44 427 INTEREST ON LONG-TERM DEBT 6,801 114 149 1,351 15 664 3,273 430 INTEREST ON DEBT TO ASSOCIATE CO. 213 32 1 10 1 16 69 431 OTHER INTEREST EXPENSE 918 134 6 36 (5) 56 284 ------- ------ ----- ------ ------ ------ ------ TOTAL EXPENSES 406,000 92,395 5,949 34,930 3,462 28,577 99,686 421 MISCELLANEOUS GAIN (421) (251) (9) (51) (5) (42) 208 INSTRUCTION: Indicate each department or service function. (See Instruction 01-3 General Structure of Accounting System: Uniform System Account) ( ) Denotes red figure. TOTAL COSTS = $405,579 $92,144 $5,940 $34,879 $3,457 $28,535 $99,894 ======== ======= ====== ======= ====== ======= =======
25
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XVII SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION DEPARTMENT OF SERVICE FUNCTION Planning Research and Corp Control Southern ACCOUNT InternalMarket Research Public Environmental System Accounting Administrative Communications NUMBER Audit and Support Production Relations Affairs Aircraft Use and General Project - ------ ------------- ----------- ---------- --------- ------------- -------- ----------- -------------- ------------- 920 $5,303 $4,909 $19,933 $1,840 $ 4,101 $2,361 $(1,127) $ 5,063 $1,856 921 598 1,047 2,743 975 1,830 654 1,171 1,371 435 922 - - - - - - - - - 923 333 5,539 2,814 466 27,378 48 - 584 3,410 924 25 21 87 10 240 12 - 389 7 925 4 3 14 1 3 2 - 85 1 926 644 533 2,159 223 454 305 - 19,296 180 928 - 16 - - - - - - - 930.2 129 198 241 167 308 138 (38) (840) 252 931 465 89 846 23 187 91 - 2,660 103 932 165 238 1,058 104 133 3,198 - 1,447 23 403 162 477 1,195 194 379 1,140 - 30 30 408 405 370 1,463 143 297 183 - 301 117 409 - - - - - - - 160 - 410 - - - - - - - - - 411 - - - - - - - - - 426.1 1 - 20 421 52 - - 1 - 427 143 392 157 170 8 106 - 224 35 430 2 4 14 2 4 58 - - - 431 9 14 57 6 18 230 72 1 - ----- ------ ------ ------ ------- ------ ------- -------- ------ Expenses 8,388 13,850 32,801 4,745 35,392 8,526 78 30,772 6,449 421 (12) (20) (78) (7) (96) (4) - (45) (9) TOTAL COSTS $8,376 $13,830 $32,723 $4,738 $35,296 $8,522 $ 78 $30,727 $6,440 ====== ======= ======= ====== ======= ====== ======= ======= ===== ( ) Denotes red figure.
26 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) DEPARTMENTAL ANALYSIS OF SALARIES ACCOUNT 920 DEPARTMENTAL SALARY EXPENSE ------------------------------------- NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO PERSONNEL Indicate each department TOTAL PARENT OTHER NON END OF or service function AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR ------ ------- ---------- ---------- ------ Engineering $ 52,192 $ 132 $ 47,417 $ 4,643 771 Executive 3,730 1,305 2,425 - 10 Finance & Accounting 17,464 1,781 15,092 591 262 Governmental Affairs 1,028 15 1,013 - 11 Human Resources & Admin 10,683 53 10,631 (1) 185 Information Resources 35,548 366 34,447 735 587 Internal Auditing 5,303 2 5,301 - 83 Planning Marketing Research & Support 4,909 1,255 3,577 77 67 Production 19,933 122 17,054 2,757 285 Public Relations 1,840 334 1,502 4 31 Research & Environmental Affairs 4,101 82 2,460 1,559 54 System Aircraft 2,361 342 2,019 - 45 Corporate Control Accounting Use (1,127) 964 (2,091) - - Administrative & General 5,063 226 4,520 317 1 Southern Communications Project 1,856 1,816 21 19 40 -------- ------ -------- ------- ----- TOTAL $164,884 $8,795 $145,388 $10,701 2,432 ======== ====== ======== ======= ===== ( ) Denotes red figure. 27 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Legal Services American Electric Power 1 Riverside Plz, Columbus,OH 43216 NA $ 54 Balch & Bingham P.O.Box 306, B'ham, AL 35201 NA 1,583 Crowell and Moring 1001 Pennsylvania Ave,Wash, DC 20004 NA 53 Edison Electric Institute 701 Pennsylvania Ave, Wash, DC 20004 NA 161 Emmanuel, Sheppard & Condon P.O.Drawer 1271, Pensacola, FL 32596 NA 321 Hunton and Williams P.O.Box 18936, Washington, DC 20036 NA 77 J. Alexander Johnson P.C. P.O.Box 836, Baxley, GA 31513 NA 25 Keller and Heckman 1001 G St, Washington, DC 20001 NA 1,689 King & Spalding 191 Peachtree St., Atlanta, GA 30303 NA 28 Troutman Sanders 600 Peachtree St.,NE, Atlanta,GA 30308 NA 1,430 Ten Other Items (less than $25,000 paid to other than Associate Cos.) Aggregate NA 29 5,450 Auditing Service Arthur Andersen & Co. 133 Peachtree St, Atlanta, GA 30303 NA 1,814 Three Other Items (less than $25,000 paid to other than Associate Cos.) Aggregate NA 78 1,892 (Continued on Page 27A)
27A ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Engineering Services Adia Services, Inc. P.O.Box 360161M, Pittsburgh, PA 15250 NA 112 Advanced R&D, Inc. P.O.Box 540747,Orlando,FL 32854-0747 NA 44 Alabama Power Company P.O.Box 2641, B'ham, AL 35291 A 114 American Hydro Corp. P.O.Box 3039, Youk, PA 17402-0039 NA 39 Ardaman & Associates P.O.Box 593003, Orlando, FL 32859 NA 31 BE&K Engineering Co. P.O.Box 102466,Atlanta,GA 30368-0466 NA 8,978 Bechtel Power Corp. P.O.Box 905168, Charlotte, NC 28290 NA 242 Brock & Blevins, Inc. 5000 Calhoun Ave.,P.O.Box 71966, Chattanooga, TN 37407 NA 60 C&B Piping, Inc. P.O.Box 67, Adamsville, AL 35005 NA 74 Combustion Power Co. 2101 Webster St., Suite 1700 Oakland, CA 94612 NA 698 Composite Construction & 1307 120th Ave., NE Engineering, Inc. Bellevue, WA 98005 NA 110 Comprehensive Computer 5098 Post Oak Tritt Rd., Consulting, Inc. Roswell, GA 30075 NA 89 Robert L. Crisp, Jr.,P.E. 422 Atwood Dr., Marietta, GA 30064 NA 29 Energy & Environmental University of N. Dakota,P.O.Box 7306, Research Center University Station, Dept of Grants, Grand Forks, ND 58202-7306 NA 410 Engineering Planning & Management, Inc. 959 Concord St., Framingham, MA 01701 NA 39 Entec Services, Inc. 1429 2nd Ave. N., Bessemer,AL 35020 NA 39 Foster Wheeler USA First Fidelity Bank, NA NJ, P.O.Box 18076, Newark, NJ 07191 NA 5,120 Georgia Power Company 333 Piedmont Ave, Accts Rec, 12th Fl, Atlanta, GA 30308 A 2,562 Gulf Power Company P.O.Box 1151, Pensacola, FL 32520 A 840 Industrial Filter & Pump P.O.Box 72354, Chicago, IL 60678-2354 NA 484 Mfg. Co., Inc. Monex Resources, Inc. 45 NE Loop 410, Suite 700, San Antonio, TX 78216 NA 199 Mustang Engineering, Inc. P.O.Box 2570, Monroe, LA 71207-2570 NA 226 (Continued on Page 27B)
27B ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT The M.W. Kellogg Co. P.O.Box 299502, Houston,TX 77299-0502 NA 9,273 Nolon Multimedia 22A Commercial Blvd., Navato,CA 94949 NA 159 Quality Assurance Technologies P.O.Box 61085, Savannah, GA 31420 NA 35 Radian Corporation P.O.Box 841687,Dallas, TX 75284-1687 NA 851 Russo Corporation P.O.Box 190048, B'ham, AL 35219-0048 NA 191 Rust International Corp. P.O.Box 360803M, Pittsburgh, PA 15230 NA 96 Software Technical 3020 Holcomb Bridge Rd., Services, Inc. Norcross, GA 30071 NA 30 Southern Haulers, Inc. P.O.Box 152, Calera, AL 35040 NA 84 Southern Research Institute P.O.Box 11407, Drawer 0375, Birmingham, AL 35246-0375 NA 1,189 Spectrum Systems, Inc. 3410 W Nine Mile Rd, Pensacola,FL 32526 NA 119 SRI International P.O.Box 2516,Menlo Park,CA 94025-2516 NA 102 Stanley Consultants, Inc. 5775 Wayzata Blvd., Suite 610, Minneapolis, MN 55416 NA 30 Steag Aktiengesellschaft Postfach 103762, D-4300 Essen 1 NA 38 Steel City Erection & Crane Rental Co., Inc. P.O.Box 10745, B'ham, AL 35202-0745 NA 649 Sunbelt Builders, Inc. 3037 Massey Rd., Birmingham, AL 35216 NA 662 Svedala Industries, Inc. P.O.Box 777-W8030, Philadelphia, PA 19175 NA 40 Tractor & Equipment Co. 5336 Airport Hwy, P.O.Box 12326, Birmingham, AL 35202-2326 NA 66 TRECO Construction Serv. 100 Corporate Pkwy, B'ham, AL 35242 NA 928 U of GA Research Business Svcs Bldg, Rm 102, Foundation Athens, GA 30602 NA 205 United Dynamics Corp. 650 S. 13th St., Unit 123, Suite 25 Indiana, PA 15701 NA 68 Vectra Technologies, Inc. Dept. 7758, Los Angeles, CA 90088 NA 91 W.S. Pitts Consulting, 5505 Creedmoor Rd., Suite 216, Inc. Raleigh, NC 27612 NA 37
(Continued on page 27C) 27C
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service. RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Westinghouse Electric Corp. P.O.Drawer CS 198252, Atlanta, GA 30384 NA 1,348 Woodward-Clyde Consultants P.O.Box 101556, Atlanta, GA 30392 NA 84 Two Hundred One Other Items (less than $25,000 paid to other than Associate Cos.) Aggregate NA 305 37,219 Other Services A. Foster Higgins & Co. P.O.Box 905235, Charlotte, NC 28290 NA 73 A&C Enercom P.O.Box 930246, Atlanta, GA 31193 NA 188 Access Inc. P.O.Drawer 566428, Atlanta, GA 30356 NA 62 Adia Services, Inc. P.O.Box 360161M, Pittsburgh, PA 15250 NA 2,588 ADP Proxy Services P.O.Box 23487, Newark, NJ 07189 NA 219 Alabama Power Company P.O.Box 2641, Birmingham, AL 35291 A 1,279 Alternative Resource Corp. P.O.Box 94020, Palatine, IL 60094 NA 153 Amdahl Corporation P.O.Box 75745, Charlotte, NC 28275 NA 56 American BankNote Co. P.O.Box 7247-8678, Philadelphia, PA 19170-8678 NA 100 Analytical Tech. Inc. P.O.Box 840436, Dallas, TX 75284 NA 74 Andersen Consulting 133 Peachtree St.,NE, Atlanta, GA 30303 NA 644 Ann Randazzo 4805 N. Little Falls Rd., Arlingotn, VA 22207 NA 42 Application Group, Inc. 200 Pine St., Suite 800 San Francisco, CA 94104 NA 450 Applied Marketing Science 303 Wyman St., Waltham, MA 02154 NA 380 Arko Executive Services, 2840 Mount Wilkinson Parkway, Inc. Suite 120, Atlanta, GA 30339 NA 299
(Continued on page 27D) 27D ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Arthur Andersen & Co. 133 Peachtree St,NE, Atlanta,GA 30303 NA 423 Aspen Systems Corp. Dept. 4-F, 1600 Research Blvd., Rockville, MD 20850 NA 79 Atkearney P.O.Box 96796, Chicago, IL 60693 NA 180 Auburn University 301 Samford Hall, Auburn, AL 36849 NA 72 Barrett Technical Services Route 3, Box 339, Roanoke, AL 36274 & Equipment NA 68 BE&K Engineering Co. P.O.Box 102466, Atlanta, GA 30368 NA 181 Blue Ridge Resource Group 415 Woodlawn Ave.,Greensboro,NC 27401 NA 32 Bob Andrews 4100 Highland Cir., B'ham, AL 35213 NA 75 Booz-Allen & Hamilton, Inc. P.O.Box 10655, Newark, NJ 07193-0655 NA 813 Bowne of Atlanta, Inc. P.O.Box 250288, Atlanta, GA 30325 NA 154 BPS Constructors 1621 Transmitter Rd., Panama City, FL 32404-3149 NA 188 Harllee Branch, Jr. Lenbrook Sq. Apt., Suite 1817, 3747 Peachtree Rd., Atlanta, GA 30319 NA 40 Brandon Systems Corp. G.P.O.Box 5222, New York, NY 10087 NA 171 Business Information P.O.Box 8500-S2635, Technology, Inc. Philadelphia, PA 19178 NA 732 Businessland, Inc. P.O.Box 8500-S-8035, Philadelphia, PA 19178-8035 NA 40 Cameron & Associates, Inc. 6100 Lake Forest Dr., Suite 550 Atlanta, GA 30328 NA 60 Career Placement 5780 Peachtree Dunwoody Rd., Suite 235 Temporaries Atlanta, GA 30342 121 Combustion Power Co. 2101 Webster St., Suite 1700, Oakland, CA 94612 NA 56 Comdisco Disaster Recovery Services, Inc. P.O.Box 91753, Chicago, IL 60693 NA 114 Communication Connection 2137 Mt. Vernon Rd., Atlanta,GA 30338 NA 41 Comprehensive Computer 5098 Post Oak Tritt Rd., Consulting, Inc. Roswell, GA 30075 NA 3,005
(Continued on page 27E) 27E ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Compupro Consulting Serv. 6255 Barfield Rd., Suite 150 Atlanta, GA 30328 NA 171 Computeractive, Inc. 5269 Huntingford Ct.,Marietta,GA 30368 NA 37 Computer People, Inc. P.O.Box 1213 Dept 765,Newark,NJ 07101 NA 37 Concord Associates, Inc. Suite 560, 1455 Pennsylvania, Ave. Washington, DC 20004 NA 87 Control Software, Inc. 998 Old Eagle School Rd., Suite 1215, Wayne, PA 19087 NA 94 Convergent Media 3490 Piedmont Rd., Atlanta, Systems GA 30305-1743 NA 49 Coopers & Lybrand P.O.Box 641103, Pittsburgh, PA 15264 NA 47 Dames & Moore File No. 54280, Los Angles, CA 90074 NA 65 Data Management P.O.Box 93607, Atlanta, GA 30377 NA 26 Data Resources, Inc. /McGraw Hill P.O.Box 5-0210,Woburn, MA 02815-0210 NA 243 Dean Witter Reynolds P.O. Box 30392, Tampa, FL 33630 NA 33 Development Authority of 501 West Parker St., P.O. Drawer 710, Appling County Baxley, GA 31513 NA 70 Development Authority of P.O.Box 657, Forsyth, GA 31029 Monroe County NA 28 Digital Equipment Corp. P.O.Box 100500, Atlanta, GA 30384 NA 26 Duff & Phelps, Credit Rating Co. P.O.Box 99108, Chicago, IL 60693 NA 66 Dunaway & Cross 1146 19th St., NW, Suite 400, Washington, DC 20036 NA 39 Edison Electric Institute 701 Pennsylvania Ave., NW, Washington, DC 20004-2696 NA 79 Edward T. Houts D/B/A 2738 Chimney Springs Dr., the Ecta Group Marietta, GA 30062 NA 80 Electric Power Research Dept. 1527, P.O.Box 61000, Inst. San Francisco, CA 94161 NA 1,462 Elrick & Lavidge, Inc. P.O.Box 4402, Atlanta, GA 30302 NA 103
(Continued on page 27F) 27F ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Englehard/ICC 441 North Fifth St., Philadelphia, PA 19123 NA 78 Engineered Concepts 1836 Canyon Rd., Birmingham, AL 35216 NA 27 Engineering Planning & 959 Concord St., Farmingham, MA 01701 Management, Inc. NA 215 Environmental Science & P.O.Box 1703, Gainesville, Engineering, Inv. FL 32602-1703 NA 39 EPRI P.O.Box 10412, Palo Alto, CA 94303 NA 93 EQE, Inc. 44 Montgomery St, Suite 3200, San Francisco, CA 94104 NA 47 Equifax P.O.Box 105186, Atlanta, GA 30348 NA 42 Ernst & Young 2121 SanJacinto Ave., Suite 500, Dallas, TX 75201 NA 327 Farrington Design Group 3391 Peachtree Rd., NE, Suite 300, Atlanta, GA 30326 NA 61 Fossil Energy Research 23342 C South Pointe, Corp. Laguna Hills, CA 92653 NA 26 Foster Wheeler USA First Fidelity Bank, NA, NJ, Corp. P.O.Box 18076, Newark, NJ 07191 NA 335 Gartner Group, Inc. P.O.Box 10799, Newark, NJ 07193-0799 NA 186 Gary Jewkes 3410 Hickory Hill Rd.,Brooks,GA 30205 NA 123 Gazebo Software 881 Kings Ct., Atlanta, GA 30306 NA 31 Georgia Power Company 333 Piedmont Ave.,Atlanta, GA 30308 A 1,111 Georgia Tech Research Gtices System Laboratories, Georgia Corp.-Attn: Joan M. Institution of Technologies, Incrocci Atlanta, GA 30332 NA 32 Godwins Brooke & 310 West Fourth St., Winston-Salem, Dickerson NC 27102-0066 NA 33 Grace Computer Resources 204 Merchants Dr., Norcross,GA 30093 NA 361 Gregory J. Stappenbeck The University of Alabama, Box 870225 Tuscaloosa, AL 35487-0225 NA 30 Gulf Power Company P.O.Box 1151, Pensacola, FL 32520 A 259 Gupta Technologies 1060 Marsh Rd, Menlo Park, CA 94025 NA 140
(Continued on page 27G) 27G ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Hallmark, Brooks & 1479 Brockett Rd., Suite 200 Lozier Incorporated Tucker, GA 30084 NA 45 Harco Technologies P.O.Box 931003-N, Cleveland Corp OH 44193-1209 NA 30 Harold M. Horowitz HMS Associates, 8825 Roswell Rd., Suite 188, Atlanta, GA 30350 NA 34 HC Associates Inter- 1455 Lincoln Pakway, Suite 180 national, Inc. Atlanta, GA 30346 NA 83 Heidrick & Struggles, P.O.Box 92227, Chicago, IL Inc. 60675-4590 NA 71 Hewitt Associates P.O.Box 95135, Chicago, IL 60694 NA 576 Hogan & Hartson Columbia Sq, 555 Thirteenth St., NW, Washington, DC 20004-1109 NA 130 HR Group, Inc. 1000 Circle 75 Parkway, Suite 710, Atlanta, GA 30339 NA 26 Hugh A. Gower 195 Edgemere Way S., Naples,FL 33999 NA 28 Human Resources 15307 Government St., Gulfport, Management MS 39503 NA 33 Ingenious Mind, Inc. 170 West 23rd St., New York, NY 10011 NA 57 International Business P.O.Box 105063-BO 030, Machines Atlanta, GA 30348 NA 53 IPD Printing & Dist- P.O.Box 81000, Chamblee, GA 30366 NA 100 ributing, Inc. James F. Reinhardt 230 River N. Dr., Suite 100, Atlanta, GA 30346 NA 200 Jeffcoat & Associates, L.P. 5266 Grantswood Rd., B'ham, AL 35210 NA 164 Jeff Smith 30 East 21st St, New York, NY 10010 NA 52 JND Sterling 7000 Central Parkway, Suite 1470, Atlanta, GA 30328 NA 35
(Continued on page 27H) 27H ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Judy Moriarty Lewis, Inc. 3534 Blue Jay Rd., B'ham, AL 35243 NA 41 Jundt Associates, 1550 Utica Avenue South, Inc. Suite 950, Minneapolis, MN 55416 NA 187 Keller & Heckman 1001 G Street, NW, Suite 500, West, Washington, DC 20001 NA 206 Kyle E. Wilcutt/Axcess Consulting & Training P.O.Box 1235, Roswell, GA 30077 NA 36 Learn PC, Inc. 10729 Bren Rd. E., Minneapolis, MN 55343 NA 28 LeCorp, Inc. P.O.Box 51, Alton, AL 35015 NA 52 Lenora C. Stephens, Ph.D. 4200 Miners Creek Rd., Lithonia, GA 30058 NA 32 Lexis-Nexis P.O.Box 100176, Atlanta, GA 30384 NA 64 Louisiana State Univ. & Office of Accounting Svcs, Baton A&M College Rouge, LA 70803-2901 NA 92 Management Advances, Inc. P.O.Box 513, Larkspur, CA 94977 NA 119 Manpower Temporary Services P.O.Box 55297, Birmingham, AL 35255 NA 76 Margaret A. Welch 3055 Brockton Close, Marietta, GA 30068 NA 45 Marjiana M. Schumann 1210 Kay Terrace, Conyers, GA 30208 NA 87 Marketing Workshop 3294 Medlock Bridge Rd., Suite 200 Norcross, GA 30092 NA 30 Martin Program Development, 5088 Victor Trail, Norcross, Inc. GA 30071 NA 109 C.V. & R.V. Maudlin 1511 K Street,NW,Washington,DC 20005 NA 42 McCall Consulting Group Two Ravinia Dr., Suite 1090, Merrill Lynch Pierce P.O.Box 12251, Church Street Station Fenner & Smith New York, NY 10249 NA 76 Merz & McLallan, AG Gewerbebank Baden, Bahnhofplatz 1, CH-5400 Baden, Switzerland NA 27 Atlanta, GA 30346 NA 38
(Continued on page 27I) 27I ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Mesa, Inc. 1720 S. Catalina, Suite 204, Redondo Beach, CA 90277 NA 101 The Mescon Group One Peachtree Center, 303 Peachtree St.,NE, Suite 1620, Atlanta, GA 30308 NA 53 Meta Group, Inc. P.O.Box 10265, Newark, NJ 07193-0265 NA 51 Micro Investment Systems P.O.Box 8599, Atlanta, GA 30306 NA 153 Mississippi Power Co. P.O.Box 4079, Gulfport, MS 39501 A 244 Moody's Investor Service P.O.Box 102597, Atlanta, GA 30368-0597 NA 102 Morgan Stanley 1221 Avenue of the Americas, 34th Fl., New York, NY 10020 NA 45 National Analysts, Inc. P.O.Box 8500-S8130, Philadelphia, PA 19178-8130 NA 303 National Environmental 600 Watergate South, Suite 1010, Strategies Washington, DC 20037 NA 214 National Training 1408 N. Morningside Dr., Systems Atlanta, GA 30306 NA 95 Ogilvy and Mather Adv. Corestates Financial Corp.,Lockbox 1820, F.C.1-2-4-3, 1 North 5th St., Philadelphia, PA 19178-1820 NA 59 On-Line Consultants 4356 Springfield Dr., Norcross, GA 30092 NA 133 Onesource Information P.O.Box 371112, Pittsburgh, Services, Inc. PA 15251-7112 NA 41 Pace Group, Inc. 142 Ferry Rd., Suite 7, Old Saybrook, CT 06475 NA 78 Parks Associates 5310 Harvest Hills Rd., Suite 235, Lock Box 162, Dallas, TX 75230 NA 70 Pensacola Testing 217 E. Brent Lane, Pensacola, Laboratories, Inc. FL 32503 NA 34 People Soft 1331 N. California Blvd., Walnut Creek, CA 94596 NA 61
(Continued on page 27J) 27J ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Performance Systems & P.O.Box 49151, Development, Inc. Atlanta, GA 30359 NA 41 Pitney Bowes Management P.O.Box 845801, Dallas, TX Services TX 75284-5801 NA 43 Planning & Control Inc. Grant Center, 2160 North Central Rd., Fort Lee, NJ 07024 NA 34 Pony Express Courier P.O.Box 75079, Charlotte, NC 28275 NA 111 Pritchett & Associates 13155 Noel Rd., Suite 1600, Dallas, TX 75240 NA 37 Proudfoor Crosby Sun Bank, NA P.O. Box 620000, Orlando, FL 32891 NA 64 Radian Corp. P.O.Box 841687, Dallas, TX 75284 NA 174 Ralph M. Parsons Co. File # 51790, Los Angeles, CA 90074 NA 40 Reid & Priest 40 West 57th St., New York, NY 10019 NA 74 Remediation Technologies 9 Pond Land, Concord, MA 01742 NA 37 Resource Data International P.O.Box 106, Boulder, CO 80306 NA 44 Richard F. Higgins 5043 Village Green Way, Alpharetta, GA 30201 NA 36 Robert H. Miles, Ph.D. 3414 Habersham Rd., Atlanta, GA 30305 NA 332 Rowan Technologies Limited Unit T19, Carrington Business Park, Carrington, Urmstron, Manchester M31 4DD England NA 38 SAS Consulting Services 1700 Rockville Pike, Suite 330, Inc. Rockville, MD 20852 NA 61 Savannah Electric & Power P.O.Box 968, Savannah, GA 31401 A 46 Savannah Laboratories & Environmental Serv. P.O.Box 13548, Savannah, GA 31416 NA 80 Scott, Madden & 2626 Glenwood Ave., Suite 480, Associates, Inc. Raleigh, NC 27608 NA 324 SCSPDA 64 Perimeter Ctr. E.,Atlanta,GA 30346 A 36 SDR, Inc. P.O.Box 81038, Atlanta, GA 30341 NA 101
(Continued on page 27K) 27K ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT Seatec, Inc. P.O.Box 127, Warrior, AL 35180 NA 44 Situation Management 195 Hanover St., Hanover, Systems, Inc. MA 02339-2294 NA 121 Software Spectrum P.O.Box 840150, Dallas, TX 75284 NA 108 Software Technical 3020 Holcomb Bridge Road Services, Inc. Norcross, GA 30071 NA 48 Southeast Marketing 1000 Northbrook Parkway, Suite B Services, Inc. Suwanee, GA 30174 NA 35 Southern Electric 900 Ashwood Pkwy, Suite 500, International Atlanta, GA 30338 A 48 Southern Enterprise 64 Perimeter Ctr. E.,Atlanta,GA 30346 A 41 Southern Research Institute P.O.Box 11407,Drawer 0375, B'ham, AL NA 298 Standard & Poor's Corp. 25 Broadway, New York, NY 10004 NA 32 Stephen N. Cole, Inc. 4745 Paran Valley, Atlanta, GA 30327 NA 131 Strategic Marketing Decisions Box 335, Woodstock, GA 30188 NA 29 Success Sciences, Inc. 4809 E. Busch Blvd., Suite 208, Tampa, FL NA 45 Sudhir Kumar Agarnal 1888 Century Way, Escondido, CA 92026 NA 38 Suntrust Public Finance P.O.Box 4418, Atlanta, GA 30302 NA 44 Systematic Solutions, 534 E. Dayton-Yellow Springs Rd., Inc. Fairborn, OH 45324 NA 26 Systems Applications Intl P.O.Box 44025, San Francisco,CA 94144 NA 750 Tanner & Herring, 1 Independence Plaza, Suite 504, Inc. Birmingham, AL 35209 NA 34 TATA Consulting Services 101 Park Ave., 26th Floor, New York, NY 10178 NA 945 The Executive Speaker, 891 Mayfield Ave., Winter Inc. Park, FL 32789-2610 NA 58 The Global Utilities Institute of Samford Univ. S.U.Box 2311, Birmingham, AL 35229 NA 531 The McBurney Corp. P.O.Box 1827, Norcross, GA 30091-1827 NA 210
(Continued on page 27L) 27L ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT The University of Alabama University Station, AB 990, at Birmingham Birmingham, AL 35294 NA 29 Arthur A. Thompson 7200 Commodore Dr., & Assoc. Tuscaloosa, AL 35406 NA 129 Time & Money, Inc. P.O.Box 88454, Dunwoody, GA 30356 NA 52 Towers Perrin P.O.Box 8500, S-6110, Philadelphia, PA 19178 NA 155 Trexler & Associates, 1131 S.E. River Forest Rd., Inc. Oak Grove, OR 97267 NA 49 Triad Technologies, 2976 Pacific Dr., Norcross, Inc. GA 30071 NA 40 Trust Company P.O.Box 4418, Center 033, Atlanta, GA 30302 NA 107 United Technologies 411 Silver Lane, East Technology Center, Inc. Hartford, CT 06108 NA 335 University of Florida Treeo Center, 3990 SW 63rd Blvd., Gainesville, FL 32608-3848 NA 37 Utility Management Suite 410, Waterview Plaza, 2001 Services Group Route 46, Parsippany, NJ 07054 NA 82 Barry A. Vittor & 8060 Cottage Hill Road, Associates, Inc. Mobile, AL 36695 NA 36 Wachovia Bank of P.O.Box 4148, Mail Code 3940, Georgia, NA Atlanta, GA 30302 NA 79 Walker/Free Associates 1730 Pennsylvania Ave., NW, Washington, DC 20006 NA 154 WEFA, Inc. P.O.Box 8500, S-1995, Philadelphia, PA 19178 NA 31 Wells Fargo Guard Services P.O.Box 668100, File #98993, Charlotte, NC 28266 NA 499 William M. Mercer, Inc. Dept. 97512, Louisville, KY 40297 NA 32 William Morehead 634 Lane St., Yreka, CA 96097 NA 60
Continued on page 27M) 27M ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OUTSIDE SERVICES EMPLOYED ACCOUNT 923 INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A"=ASSOCIATE "NA"= NON FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT W. Robert Worley 190 St. Clair Dr.,St. Simons Island, GA 31522 NA 46 Xerox Corporation Xerox Sq-0870, Rochester, NY 14664 NA 595 Z Solutions 9430 Huntcliff Trace, Atlanta, GA 30350 NA 54 1,223 Other Items (less than $25,000 paid to other than Associate Cos.) Aggregating NA 3,252 35,853 $80,414
28 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) EMPLOYEE PENSIONS AND BENEFITS ACCOUNT 926 INSTRUCTIONS: Provide a listing of each pension plan and benefit program provided by the service company. Such listing should be limited to $25,000. DESCRIPTION AMOUNT Pensions $(1,523) Early Retirement Benefits 13,957 Employees Group Insurance 7,486 Postretirement Medical Benefits 9,504 Postretirement Life Benefits 2,409 Educational Assistance Plan 146 Minority Scholarship Program 83 Employee Savings Plan - Company Contribution 5,058 Employee Health and Physical Examinations 122 Other (Employees' Professional Fees and Other Employee Fringe Benefits) 365 ------- TOTAL $37,607 ======= 29 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) GENERAL ADVERTISING EXPENSES ACCOUNT 930.1 INSTRUCTIONS: Provide a listing of the amount included in Account 930.1, "General Advertising Expenses", classifying the items according to the nature of the advertising and as defined in the account definition. If a particular class includes an amount in excess of $3,000 applicable to a single payee, show separately the name of the payee and the aggregate amount applicable thereto. DESCRIPTION NAME OF PAYEE AMOUNT NOT APPLICABLE 30 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) MISCELLANEOUS GENERAL EXPENSES ACCOUNT 930.2 INSTRUCTIONS: Provide a list of the amount included in Account 930.2, "Miscellaneous General Expenses", classifying the items according to their nature. Payments and expenses permitted by Section 321 (b) (2) of the Federal Election Campaign Act, as amended by Public Law 94-284 in 1976 (2 U.S.C.S. 441 (b) (2) shall be separately classified. DESCRIPTION AMOUNT Meetings/Seminars/Hotels/Catering/Meals/Conferences $1,530 Dues and Memberships 610 Recruiting/Interviewing/Placement 25 Employee Training 3,045 Transportation/Personnel Expense 37 Billing Adjustments (296) Membership Fee 6 Employee Activities 140 Corporate Moving Expense 92 Bank Fees 209 Other General Expense 802 TOTAL $6,200 ====== 31 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) RENTS ACCOUNT 931 INSTRUCTIONS: Provide a listing of the amount included in Account 931, "Rents", classifying such expenses by major groupings of property, as defined in the account definition of the Uniform System of Accounts. DESCRIPTION AMOUNT Office Rents $ 6,491 Computer and Other Data Processing Equipment Rental 1,188 Software Rental 2,282 Automobile, Office Furniture & Equipment, and Miscellaneous Storage & Equipment Rental 736 TOTAL $10,697 ======= 32 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) TAXES OTHER THAN INCOME TAXES ACCOUNT 408 INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income Taxes". Separate the analysis into two groups: (1) other than U.S. Government taxes, and (2) U.S. Government taxes. Specify each of the various kinds of taxes and show the amounts thereof. Provide a subtotal for each class of tax. KIND OF TAX AMOUNT Other Than U.S. Government Taxes State Unemployment $ 90 State Franchise 8 Net Worth Tax 52 Intangible Property Tax 2 Miscellaneous Taxes 21 Property and Other City and State 1,349 Subtotal - Other 1,522 U.S. Government Taxes Federal Insurance Contributions Act 10,717 Federal Unemployment 171 Subtotal - U.S. Government 10,888 TOTAL $12,410 ======= 33 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) DONATIONS ACCOUNT 426.1 INSTRUCTIONS: Provide a listing of the amount included in Account 426.1, "Donations", classifying such expenses by its purpose. The aggregate number and amount of all items of less than $3,000 may be shown in lieu of details. NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT 280 Shades Creek Project Civic & Charitable $ 28 Alabama, University of Employee Matching Gift 12 Alpha Phi Alpha Fraternity Educational Contribution 5 American Council for Capital Formation Support of Program 5 American Heart Association Civic & Charitable 6 Atlanta Chamber of Commerce Civic & Charitable 10 Atlanta Project Civic & Charitable 5 Auburn University Employee Matching Gift 4 Birmingham Area Chamber of Commerce Civic & Charitable 25 Birmingham Area Council Civic & Charitable 6 Birmingham Urban Revitalization Project Civic & Charitable 125 Business Institute for Political Analysis Support of Program 25 Callanwold Fine Arts Center Civic & Charitable 5 Care Foundation Civic & Charitable 5 Center for Legislative Energy & Environmental Research Support of Program 8 Children's Hospital Civic & Charitable 4 City Stages Run Civic & Charitable 4 Edison Electric Institute Support of Program 51 Georgia Council on Economic Education Educational Contribution 5 Georgia Institute of Technology Employee Matching Gift 8 Georgia Institute of Technology Educational Contribution 20 Georgia Mental Health Association Civic & Charitable 3 Georgia Youth Science & Technology Center Civic & Charitable 30 International Science & Engineering Fair Civic & Charitable 5 Kennedy Center for Performing Arts Civic & Charitable 5 Keystone Center Civic & Charitable 15 Literacy Council of Central Alabama Civic & Charitable 5 March of Dimes Civic & Charitable 21 The National Coal Council Support of Program 18 Partnership for a Drug Free America Civic & Charitable 15 Republican Senate/House Dinner Trust Support of Program 20 Resources for the Future Support of Program 25 33A ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) DONATIONS ACCOUNT 426.1 INSTRUCTIONS: Provide a listing of the amount included in Account 426.1, "Donations", classifying such expenses by its purpose. The aggregate number and amount of all items of less than $3,000 may be shown in lieu of details. NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT Senator's Ski Cup Civic & Charitable 7 Smithsonian Institution Civic & Charitable 8 Southern Governor's Association Support of Program 5 Southern States Energy Board Support of Program 4 Taste of the South (Tutwiler Clinic) Civic & Charitable 9 Tax Foundation, Inc. Civic & Charitable 4 United Negro College Fund Educational Contribution 15 United States Energy Association Support of Program 3 U. S. Olympic Committee Civic & Charitable 10 United Way Civic & Charitable 135 Woodruff Arts Center Civic & Charitable 3 92 Other Items (Less than $3,000) Civic & Charitable 124 129 Other Items (Less than $3,000) Employee Matching Gift 26 5 Other Items (Less than $3,000) Support of Program 4 4 Other Items (Less than $3,000) Educational Contribution 5 TOTAL 890 === 34 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) OTHER DEDUCTIONS ACCOUNT 426.5 INSTRUCTIONS: Provide a listing of the amount included in Account 426.5, "Other Deductions", classifying such expenses according to their nature. DESCRIPTION NAME OF PAYEE AMOUNT NOT APPLICABLE 35 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XVIII NOTES TO STATEMENT OF INCOME INSTRUCTIONS: The space below is provided for important notes regarding the statement of income or any account thereof. Furnish particulars as to any significant increase in services rendered or expenses incurred during the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. See Notes to Financial Statements on Pages 19 - 19H. 36 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 (Thousands of Dollars) SCHEDULE XIX FINANCIAL DATA SCHEDULE INSTRUCTIONS: The space below is provided for important notes regarding the statement of income or any account thereof. Furnish particulars as to any significant increase in services rendered or expenses incurred during the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. Net Service Company Property 134,776 Total Investments 2,880 Total Current and Accrued Assets 114,510 Total Deferred Debits 898 Balancing Amount for Total Assets and Other Debits - Total Assets and Other Debits 253,064 Total Proprietary Capital 784 Total Long-Term Debt 74,048 Notes Payable 12,428 Notes Payable to Associate Companies 15,050 Balancing Amount for Total Current and Accrued Liabilities 89,958 Total Deferred Credits 60,796 Accumulated Deferred Income Taxes - Total Liabilities and Proprietary Capital 253,064 Services Rendered to Associate Companies 361,253 Services Rendered to Nonassociate Companies 44,326 Miscellaneous Income or Loss 421 Total Income 406,000 Salaries and Wages 164,884 Employee Pensions and Benefits 37,607 Balancing Amount for Total Expenses 203,509 Total Expenses 406,000 Net Income (Loss) - Total Expenses (Direct Costs) 302,288 Total Expenses (Indirect Costs) 103,291 Total Expenses (Total) 405,579 Number of Personnel End of Year 2,432 37 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. ORGANIZATION CHART President & CEO Sr. Executive Dir. Internal Vice Pres. Executive Senior Vice Pres. Auditing Information Vice Pres. Vice Pres. Atlanta Resources Finance & External Region Accounting Affairs Vice Pres. Dir. Internal Vice Pres. Vice Pres. Vice Pres. Materials Auditing Human & Public Management Birmingham Resources Comptroller Relations Region Vice Pres. Dir. Internal Vice Pres. Vice Pres. Vice Pres. Research & Auditing Planning,Mkt. Secretary & Federal Environmental Mississippi Research & House Government Affairs Support Counsel Relations Vice Pres. Dir. Internal Director Vice Pres. Operating & Auditing Short-Term Environmental Planning Svcs. Savannah Finance Policy Vice Pres. Director Vice Pres. Fuel Financial Corporate Services Planning & Counsel Treasury Executive Vice Pres. Engineering Vice Pres. Projects Management 38 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 METHODS OF ALLOCATION 1. Annual Operating Area Territorial Load Basis Each Client Operating Company, other than Southern Electric Generating Company (SEGCO), will be charged that percentage of the total Service Company charges to be distributed by this method which its annual operating area territorial load is of the total annual operating area territorial load of the Southern electric system, defined as total energy generated plus energy received minus energy deliveries to exclude loads and include all Southeastern Power Administration (SEPA) Preference Customer loads (exclusive of the direct SEPA-Crisp County component), as well as loads served jointly by Georgia Power Company and Oglethorpe Electric Membership Corporation, Municipal Electric Association of Georgia (MEAG), and City of Dalton through the aforesaid companies joint ownership of generating facilities with Georgia Power Company. The MEAG component includes any component for Crisp County under the provisions of the MEAG-Crisp County Agreement. Excluded areas are such as those of South Mississippi Electric Power Association, Alabama Electric Cooperative, Tennessee Valley Authority, Florida Power Corporation, etc. 2. Customer Basis Each Client Operating Company, other than SEGCO, will be charged that percentage of the total Southern Company charges to be distributed by this method which its average number of customers for the preceding year is of the total average number of customers of the Southern electric system, other than SEGCO, for such year. 3. Employee Basis Each Client Operating Company, other than SEGCO, will be charged that percentage of the total Service Company charges to be distributed by this method which its average number of employees for the preceding year is of the total average number of employees of all Client Operating Companies, other than SEGCO, for such year. 4. Direct Billing Basis Each Client Operating Company will be charged that percentage of the total Service Company charges to be distributed by this method which its applicable Service Company direct billings for the preceding year is to the total Service Company direct billings for such year. 38A ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 METHODS OF ALLOCATION 5. Financial Basis Each Client Operating Company will be charged that percentage of the total Service Company charges to be distributed by this method which its average of the percentages of net fixed assets, operating expenses and operating revenue sources is to the total Client Operating Company net fixed assets, operating expenses and operating revenue of the Southern electric system. 6. Fossil Fuel Generation Basis Each Client Operating Company will be charged that percentage of the total Service Company charges to be distributed by this method which its generation from fossil fuel sources is of the total generation from fossil fuel sources of the Southern electric system. 7. Fossil and Hydro Capacity Basis Each Client Operating Company will be charged the factor determined by dividing the total fossil and hydro generating capacity for each company, including capacity attributed to joint owners of system plants, by the total fossil and hydro generating capacity for the Southern electric system. 8. Insurance Premium Basis Each Client Operating Company will be charged that percentage of the total Service Company charges to be distributed by this method which its applicable insurance premiums is to the total applicable insurance premiums of the Southern electric system. 9. Net Fixed Assets Basis Each Client Operating Company will be charged that percentage of the total Service Company charges to be distributed by this method which its net fixed assets is to the total net fixed assets of the Southern electric system. 10. Number of Nuclear Plants Each Client Operating Company will be charged that percentage of the total Service Company charges to be distributed by this method which its number of nuclear plants is to the total nuclear plants. 38B ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 METHODS OF ALLOCATION 11. Number of Vehicles Basis Each Client Operating Company will be charged that percentage of the total Service Company charges to be distributed by this method which its number of vehicles is to the total vehicles maintained on the Standard Transportation System. 12. Nuclear Plant Capacity Basis Each Client Operating Company will be charged that percentage of the total Service Company charges to be distributed by this method which its name plate kilowatt capacity of nuclear plants is to the total kilowatt capacity of all nuclear plants. 13. Nuclear Plant Generation Basis Each Client Operating Company will be charged that percentage of the total Service Company charges to be distributed by this method which its net generation of nuclear plants is to the total net generation of all nuclear plants. 14. Preferred Stockholder Basis Each Client Operating Company will be charged that percentage of the total Service Company charges to be distributed by this method which is the number of preferred stockholders per Client Operating Company to the total preferred stockholders maintained on the Standard Preferred Stock System. 15. Salary Basis The ratio of all applicable work orders for the appropriate division, department, groups of departments or other cost centers that incur salary charges per month. The larger the amount of salary charges to a direct work order, the larger the amount that work order will receive in the allocation. 38C ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 METHODS OF ALLOCATION 16. Southern System Basis This method will be applicable only to charges for services which relate to Southern and other Client Operating Companies. Each Client Operating Company will be charged for the charges to be distributed by this method in the ratio of such Client Company's total capitalization to the sum of the total capitalization of all Client Operating Companies. 17. System Aircraft Variable costs incurred related to system aircraft are charged to theparticipating Client Companies using one of three methods: A) Variable costs incurred for travel within the Southern electric system are allocated using the Southern System Basis; B) Variable costs incurred for travel outside the Southern electric system are allocated based on the percentage of miles flown for each specific Client Company to the total miles flown by all participating Client Companies. C) Variable costs incurred for travel inside a particular Client Company's service territory are allocated based on the percentage of miles flown for each specific Client Company to the total miles flown by all participating Client Companies. Fixed costs related to system aircraft (rent, depreciation, salaries, etc.) are allocated to participating Client Companies using a three- year rolling average of variable costs. 39 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED The following annual statement was supplied to each associate client company regarding interest billed for compensation of equity capital and borrowed capital in 1994. Pursuant to the amended Uniform System of Accounts for Mutual and Subsidiary Service Companies implemented in January 1980, Southern Company Services is required to submit an annual statement to its associated client companies stating the amount and calculation of interest billed for compensation of equity capital and borrowed capital. Southern Company Services does not bill its associated client companies for compensation of equity capital. In 1994 Southern Company Services initiated short-term borrowings from The Southern Company and other outside banking institutions. The interest rates on these borrowings ranged from 3.15% to 6.355%. Interest in the amounts of$213,012.60 and $905,095.63 was accrued on Southern Company and outside borrowings respectively and was billed to the client companies. The interest was distributed to each company either on the appropriate fixed percentage allocation basis or on the salary allocation basis in accordance with the SEC orders and our service contracts. In addition, as of December 31, 1994, Southern Company Services had long-term debt outstanding from various institutions in the amount of $74,475,938.95. The interest rates on these borrowings ranged from 4.62% to 13.0%. Interest of $6,814,254.72 was accrued and billed to the client companies. The interest was distributed to each company either on the appropriated fixed percentage allocation basis or on the salary allocation basis in accordance with the SEC orders and service contracts. The interest on total service company indebtedness was billed to the associate and nonassociate companies as follows: The Southern Company $ 527,215.28 Alabama Power Company 1,930,060.93 Georgia Power Company 3,193,066.60 Gulf Power Company 474,869.40 Mississippi Power Company 537,853.06 Savannah Electric & Power Company 128,169.97 Southern Development and Investment Group, Inc. 670.80 Southern Electric Generating Company 14,336.19 Southern Electric International, Inc. 286,199.28 Southern Electric Railroad Company 22,592.47 Southern Nuclear Operating Company 758,041.42 Nonassociate 59,287.55 ------------- $7,932,362.95 ============= 40 ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC. For the Year Ended December 31, 1994 SIGNATURE CLAUSE Pursuant to the requirements of the Public Utility Holding Company Act of 1935 and the rules and regulations of the Securities and Exchange Commission issued thereunder, the undersigned company has duly caused this report to be signed on its behalf by the undersigned officer thereunto duly authorized. Southern Company Services, Inc. (Name of Reporting Company) By: /s/ W. Dean Hudson (Signature of Signing Officer) W. Dean Hudson, Vice President & Comptroller (Printed Name and Title of Signing Officer) Date: April 24, 1995 -----END PRIVACY-ENHANCED MESSAGE-----